Professional Documents
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DC-18-18651
CITY OF DALLAS, § IN THE DISTRICT COURT
§
Plaintiff, and §
§
STATE OF TEXAS, §
§
§
Intervenor-Plaintiff
§
§
v. §
§ DALLASCOUNTY,TEXAS
BLUE STAR RECYCLING LLC;
§
ALMIRA INDUSTRIAL AND TRADING §
CORP.; CCR EQUITY HOLDINGS §
ONE, LLC; 9505 S. CENTRAL §
EXPRESSWAY, IN REM; 9527 S. §
CENTRAL EXPRESSWAY, IN REM; §
AND CHRIS GANTER, §
§
Defendants. § 191st JUDICIAL DISTRICT
On this day, Plaintiffs, the City of Dallas and the State of Texas, and Defendants, CCR Equity
Holdings One, LLC, and 9505 S. Central Expressway, In Rem 1 (collectively the "Settling Parties"),
submitted to the Court this Agreed Final Judgment ("Agreed Judgment") following negotiations
and settlement of this case. By presenting this Agreed Judgment to the Court, the State of Texas
announces that it has published notice of this Agreed Judgment in the Texas Register for thirty
(30) days as required by Texas Water Code§ 7.110, and received no comments that indicate the
1
Based on the conflicting information available in the public records, it is not feasible to distinguish between the
separate properties based on the addresses of 9505 S. Central Expressway and 9527 S. Central Expressway. This
Agreed Judgment applies to the Real Property owned by CCR One (defined infra), but not the real property owned by
defendant Almira Industrial and Trading Corp. regardless of the address.
Therefore, by duly authorized signatures subscribed to this Agreed Judgment, the Settling Parties
represent to the Court that they agree to its terms, and that it represents the compromise and
settlement of all Claims (defined irifra) brought against 9505 S. Central Expressway, In Rem and
CCR Equity Holdings One, LLC. The Court finds that it has jurisdiction over the subject matter
of this action pursuant to Chapters 54 and 211 of the Texas Local Government Code and Chapter
7 of the Texas Water Code. After reviewing the pleadings, the Court finds this Agreed Judgment
I. PARTIES
mainly in Dallas County, Texas, incorporated and operating under the laws of the State of Texas.
on Environmental Quality.
3. The settling Defendants are 9505 S. Central Expressway, In Rem and CCR Equity
Holdings One, LLC ("CCR One"). CCR One is a Texas limited liability company that owns the
real property described in the Special Warranty Deed with Vendors Lien that was recorded in
Dallas County, Texas on April 12, 2018, Instrument No. 201800096174, as follows:
Abnini trad, 11 distarn;e of 290.64 r«r to a 112 Inch Iron rod folllld for corner, Hme bciBg
the cast comer lhereor, gald point also beiag in !111, #outhwestcrly liac of J1aid S. Ct\ntral
Elrpressway;
THENCE South JO degn!e.s 59 minute, 20 seconds Eaat, with the ""m,rly line of sRicl Cmnd
Auto Salva~ true (2001188JlS30), and ~·!lb Ille soulhwesttriy line of !IUI S. Cenlnl
Expl'elliiWay, a dirtancc or 346.94 feet to TUE POINT OP BEGJNN!NG and oontai1dng
4.JSII acres of land, more or le•M.
4. The Settling Parties do not include Blue Star Recycling, LLC, Almira Industrial and
a. The City and the State are duly authorized to bring the Claims pursuant to State
law.
b. This Agreed Judgment complies with all statutory, jurisdictional, and procedural
c. The Settling Parties agree to the terms of the Agreed Judgment, request the Court
Nothing in this Agreed Judgment, including the payment of civil penalties to the State, shall
Claims in the lawsuit on behalf of CCR One, 9505 S. Central Expressway, In Rem, or the
Real Property owned by CCR One, or any of their members, agents, affiliates, successors or
assigns. This Agreed Judgment merely effectuates the terms of the Settling Parties
e. The Settling Parties' agree that: they actively participated in negotiations leading
up to this Agreed Judgment, they understand the duties placed upon them by this Agreed
Judgment, they have read the terms of this Agreed Judgment, and this Agreed Judgment is
not ambiguous.
a. "Settling Parties" shall mean the City of Dallas, the State of Texas, and CCR
Equity Holdings One, LLC, 9505 S. Central Expressway, In Rem, and the Real Property
b. "Effective Date" shall mean the date this Agreed Judgment is signed by the Court.
c. "Claims" shall mean all manner of action and actions, cause and causes of action,
request or requests for damages, request or requests for judgments, request or requests for
fines or penalties, and demands whatsoever, in law or in equity, that were asserted by the
City or State against 9505 S. Central Expressway, In Rem and CCR Equity Holdings One,
LLC in the above-styled lawsuit including in the Plaintiff City of Dallas's First Amended
Petition, Request for Temporary Restraining Order, Request for Temporary and Permanent
Injunctions, and Requests for Disclosure and the State of Texas's Original Petition in
e. "Solid Waste" has the meaning defined in Section 361.003(35) of the Texas Solid
Waste Disposal Act, and, in addition, includes petroleum and petroleum product wastes.
Solid Waste includes, but is not limited to, recyclable material pursuant to 30 Texas
described by ASTM Standard E-1527 and the All Appropriate Inquiry Rule promulgated by
the U.S. Environmental Protection Agency for Phase I assessments and 30 TAC 350 for
environmental site assessments, including the Texas Risk Reduction Program {"TRRP"), as
2. This list is not exclusive; other definitions are given elsewhere in this Agreed
Judgment.
1. 1n settlement of all Claims by the State, CCR One shall pay the State the amount of
fifty-five thousand dollars ($55,000) as a civil penalty (the "State Payment"). CCR One shall make
full payment of the State Payment in accordance with Section VIII of this Agreed Judgment.
2. 1n settlement of all Claims by the City, CCR One shall pay the City the amount of one
million dollars ($1,000,000.00) (the "City Settlement Payment"). CCR One shall make full
payment of the City Settlement Payment in accordance with Section VIII of this Agreed Judgment.
1. The Settling Parties agree, and it is hereby ordered that, upon the City's receipt of the
City Settlement Payment, and pursuant to Section 54.020 of the Texas Local Government Code,
the City shall promptly commence, within sixty (60) days of the receipt of the City Settlement
Payment, removal and disposal of all Solid Waste materials, including, but not limited to the
unprocessed roofing shingles and ground-up shingle materials, from the Real Property owned by
CCR One and diligently dispose of all Solid Waste on the Real Property owned by CCR One in
accordance with all local, state, and federal rules and regulations, until completion (the "Solid
Waste Removal Phase") which shall occur within one year of the Effective Date. The duration of
the Solid Waste Removal Phase may be extended only by written agreement of the Settling Parties,
signed and filed with the Court pursuant to Texas Rule of Civil Procedure, or by an order approved
2. If the Solid Waste materials currently located on the Real Property owned by CCR One
are transferred by the City and offered for disposal at McCommas Bluff Landfill, the City and
State agree to waive all fees associated with the disposal, including the statutory tipping fees, as
3. CCR One shall grant access to the City to the Real Property owned by CCR One as
needed to effectuate this Agreed Judgment in accordance Section VI of this Agreed Judgment.
4. If CRR One fails to make the City Settlement Payment under this Agreed Judgment
within thirty (30) days of the Effective Date, CCR One shall immediately commence removal and
disposal of all Solid Waste materials, including, but not limited to the unprocessed roofing shingles
and ground-up shingle materials, from the Real Property owned by CCR One. CCR One shall
dispose of all Solid Waste on the Real Property owned by CCR One, in accordance with all local,
state, and federal rules and regulations, within one year of the Effective Date. The duration of the
Solid Waste Removal Phase may be extended only by written agreement of the Settling Parties,
signed and filed with the Court pursuant to Texas Rule of Civil Procedure, or by an order approved
by the Court.
5. Within one hundred and eighty (180) days following the removal of all Solid Waste
materials from the Real Property Owned by CCR One, including, but not limited to the
unprocessed roofing shingles and ground-up shingle materials, the City shall ensure that an
Environmental Site Assessment of the Real Property owned by CCR One is conducted (the
"Environmental Site Assessment Phase"). The Environmental Site Assessment shall be performed
by a licensed environmental consultant to be mutually agreed upon by the City and CCR One (or
otherwise approved by the Court solely in the event the City and CCR One are unable to mutually
duration of the Environmental Site Assessment Phase may be extended only by written agreement
of the Settling Parties, signed and filed with the Court pursuant to Texas Rule of Civil Procedure,
6. The City shall promptly submit a copy of the Environmental Site Assessment report
detailing the findings of the Environmental Site Assessment to the Settling Parties within fourteen
7. Upon completion of the Solid Waste Removal Phase and Environmental Site
Assessment, the City shall have the right to acquire the Real Property owned by CCR One from
8. Sh.ould the City elect to acquire the Real Property owned by CCR One, it must provide
written notice to the Settling Parties through their counsel of record in this lawsuit within thirty
9. Within sixty (60) days of written notification by the City of its election to acquire the
Real Property owned by CCR One, or such reasonable time thereafter as the purchase money
lender on the Real Property owned by CCR One records a Release of Lien, CCR One shall convey
good and indefeasible title to the Real Property owned by CCR One to the City free and clear of
any recorded liens, except for any liens that have been or may be recorded by the City, its agents
or contractors during, arising from, or in connection with the Solid Waste Removal Phase or
Environmental Site Assessment Phase and including any lien under Section 54.020 of the Texas
Local Government Code (unless CCR One does not make full payment of the City Settlement
Payment). CCR One will pay for the title insurance policy.
10. CCR One (including any successors, and/or assigns) and its members, managers,
which includes but is not limited to CCR Equity Holdings Two, LLC, CCR Equity Holdings Three,
LLC, CCR Equity Holdings Four, LLC, CCR Equity Holdings Five, LLC, CCR Equipment, LLC,
and CCR Equity Management, LLC, shall not lease any real property located in Dallas County,
Texas, Collin County, Texas, Denton County, Texas, Kaufman County, Texas, or Rockwall
County, Texas to (a) Blue Star Recycling LLC for any future landfill site or shingles recycling use
or any industrial use, or (b) to any other entity for which Chris Ganter is an owner; member; or, to
the extent CCR One has actual knowledge of Ganter's status, an employee.
1. In order to complete the Solid Waste Removal Phase and Environmental Site
Assessment, CCR One hereby grants to City, its agents, employees and contractors, including the
entity or entities that enter into a Contract for Services with the City for services provided in
connection with the Solid Waste Removal Phase (hereinafter the "Contractor"), a non-exclusive
license, right, and privilege of ingress and egress, over, across and under the Real Property owned
by CCR One for the sole purpose of conducting the required activities of the Solid Waste Removal
Phase and those activities which are reasonably necessary in connection with the Solid Waste
2. To the extent practicable, City shall provide CCR One with at least five (5) days' notice
(a) furnish all materials and perform all work and activities necessary for the Solid
Waste Removal Phase in accordance with all applicable federal, state and local laws and
(b) prior to commencement of the Solid Waste Removal Phase, submit to CCR One all
details and specifications of anticipated activities during the Solid Waste Removal Phase,
including proposed location of installations on the Real Property owned by CCR One, if any;
(c) City shall pay all costs for all materials and labor in connection with the Solid Waste
Removal Phase;
(d) promptly provide CCR One with split samples (if requested by CCR One) and data of
any monitoring or tests, including copies of any reports thereof, taken in connection with
environmental assessments performed during or in connection with the Solid Waste Removal
(e) in connection with the performance of the Solid Waste Removal Phase and
Environmental Site Assessment Phase properly restore, repair and/or replace any buildings, or
other improvements or fixtures on the Real Property owned by CCR One which may have been
inadvertently damaged to the same or better condition (and, if applicable, same grade level)
existing before the commencement of the Solid Waste Removal Phase; and
(:t) not record any liens, or allow any of its agents or subcontractors, to record any liens
against the Real Property owned by CCR One during, arising from, or in connection with the Solid
Waste Removal Phase or Environmental Site Assessment Phase, and including any lien under
Section 54.020 of the Texas Local Government Code (assuming the City Settlement Payment is
4. Throughout the Solid Waste Removal Phase, the City shall require the Contractor to
coverage, independent contractor coverage, broad form property damage liability coverage,
limit amount of not less than $1 million, with a general aggregate for all occurrences within such
policy year of not less than $2 million, in each case such limits to be maintained regardless of any
payouts made thereunder. The City shall require the Contractor to have CCR One identified as an
additional insured under the commercial general business liability insurance policy. The City shall
require the Contractor to maintain the insurance and comply with the requirements of the Insurance
Requirements agreed upon by the Contractor in connection with the City's Request for Proposal
to perform monitoring during the Solid Waste Removal Phase or Environmental Site Assessment
Phase must be licensed pursuant to all applicable Legal Requirements throughout the term of the
6. The City shall designate a project manager to communicate with the Contractor, any
testing company, the environmental consultant, and CCR One. The City will provide CCR One
with the contact information (name, phone number and email address) for the project manager to
communicate with CCR One and/or its designated agents regarding the status of the Solid Waste
Removal Phase, Environmental Site Assessment Phase, and Environmental Site Assessment. The
City will require the Contractor, any testing company and the environmental consultant to adhere
to the Environmental Policy of the City of Dallas, including the Environmental Management
System (EMS), based upon International Standards Organization (ISO) Standard 14001, as well
as all local, state, and federal laws, rules, and regulations, including, without limitation, those of
Agency (EPA), and the Texas Commission on Environmental Quality (TCEQ). If (i) a spill or
release occurs, or (ii) any violation of the above-referenced local, state or federal laws, rules, or
regulations occurs (subparts (i) and (ii) are collectively referred to as an "Incident"), the City will
request the Contractor, any testing company, and environmental consultant to simultaneously
report to the City and CCR One such an Incident. The City Designate shall also notify CCR One
of any such Incident at the earliest possible opportunity. The City shall provide a written status
report to the CCR One at least every two weeks regarding the Solid Waste Removal Phase,
Environmental Site Assessment Phase, and Environmental Site Assessment. The written status
report shall also include any reports, disposal receipts, photos, or manifests provide to the City by
the Contractor, testing company or environmental consultant during the preceding two weeks.
These documents will be provided to CCR One via a designated email address. The City shall
work cooperatively with CCR One to exchange relevant information regarding the Solid Waste
Removal Phase, Environmental Site Assessment Phase, and Environmental Site Assessment.
7. Access to the Real Property owned by CCR One shall terminate upon the completion
of the Solid Waste Removal Phase and Environmental Site Assessment Phase.
1. CCR One shall pay the State the amount of thirty thousand dollars ($30,000) in
attorney's fees. CCR One shall make full payment of this amount in accordance with Section VIII
VIII. PAYMENT
1. All amounts required to be paid to the State in accordance with Sections IV and VII of
this Agreed Judgment shall be paid within thirty days (30) of the Effective Date of the Agreed
check shall be delivered to Division Chief, Environmental Protection Division, Office of the
2. The City Settlement Payment shall be made by certified check payable to the "City of
Dallas." The check shall be delivered to counsel of record for the City of Dallas, City Attorney's
Office, Dallas City Hall, 1500 Marilla Street, Suite 7DN, Dallas, Texas 75201 within five business
(5) days of the signature of this Agreed Judgment by both counsel for the City and CCR One. The
City shall not endorse or deposit the check until the Effective Date of this Agreed Judgment. The
check will be returned to CCR One if there is no Effective Date within ninety (90) days of the
1. In consideration for the City Settlement Payment, the City and CCR One release
each other (with the City's release also including CCR One's members, managers, and owners,
including, but not limited to Cabe Chadick) from all manner of action and actions, cause and
causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties,
judgments, executions, claims, fines, penalties, and demands whatsoever, in law or in equity
(collectively "Released Claims"), which the City or CCR One and their agents, representatives,
predecessors, successors, and assigns, ever had, or now has, against the City or CCR One
respectively relating to, arising out of, or in any way stemming from the above-styled Lawsuit,
the Claims, the Real Property owned by CCR One, the Solid Waste material, and/or any claims
that the City asserted in the above-styled lawsuit, with the exception of the Parties' obligations
another lawsuit against CCR One or its members asserting the Released Claims pending the entry
X. RESERVATION OF RIGHTS
1. Notwithstanding any other provision of this Agreed Judgment, nothing in this Agreed
b. Claims based on a failure by CCR One to meet a requirement of this Agreed Judgment;
c. Criminal Liability;
d. Liability for violations of federal, state, or local law that occur on or after the Effective
2. Nothing in this Agreed Judgment shall limit the State's use of this Agreed Judgment as
required by law.
3. The State reserves its rights to seek additional administrative, civil, or criminal
penalties for violations of state or local law that occur after the Effective Date, or for any claims
arising from factual allegations not raised in the City or State's pleadings.
1. The signature on this Agreed Judgment for the State is subject to the public notice and
comment required by the Texas Water Code § 7 .110. This Agreed Judgment will not be presented
to the Court and the State's consent will not be effective until public notice of this Agreed
Judgment has been published in the Texas Register, the public has been given thirty (30) days
during which to comment to the State on the terms of this Agreed Judgment, and the State has re-
affirmed its consent after considering any comments, by presenting the Agreed Judgment to the
I. If any payments are not made in accordance with this Agreed Judgment, the State
and/or City may execute and seek all lawful means of collection on the entire unpaid balance of
2. CCR One shall pay post-judgment interest on all amounts awarded in this Agreed
Judgment at the legal rate of five (5) percent per annum, if such amounts are not paid pursuant to
1. This Agreed Judgment may be executed in multiple parts, which together shall
constitute a single original instrument. Any executed signature page to this Agreed Judgment may
be transmitted by facsimile transmission or email to the other Settling Parties, which shall
2. The State may abstract and record the Agreed Judgment in the exercise of its discretion
as permitted by law.
3. This Agreed Judgment shall not be construed in any way to relieve CCR One,
including its agents or contractors, from the obligation to comply with any federal, state, or local
law.
4. This Agreed Judgment shall not be construed in any way to relieve the City,
including its agents or contractors, from the obligation to comply with any federal, state, or local
law.
that he or she is fully authorized to enter into the terms and conditions of the Agreed Judgment
and to legally execute and bind that party to the Agreed Judgment.
6. This Agreed Judgment does not affect the rights of the City or the State to continue the
prosecution of the above-styled lawsuit against Blue Star Recycling, LLC, Almira Industrial and
Trading Corp., and/or Chris Ganter, or to bring any other administrative, criminal or civil
proceedings as provided by law against Blue Star Recycling, LLC, Almira Industrial and Trading
7. The Settling Parties' agree to file an Agreed Motion to Sever the claims which are the
subject of this Agreed Judgment, so that this Agreed Judgment will become final as to the Settling
JUDGE PRESIDING
KEN PAXTON
Attorney General of Texas
BRENT WEBSTER
First Assistant Attorney General
RYAN L. BANGERT
Deputy First Assistant Attorney General
PRISCILLA M. HUBENAK
Chief, Environmental Protection Division
Date Signed: _ _ _ _ _ _ _ _ _ __
PHILLIP LEDBETTER
Assistant Attorney General
State Bar No. 24041316
Phillip.Ledbetter@oag.texas.gov
JAKE K. BROWN
Assistant Attorney General
State Bar No. 24084234
J ake.Brown@oag.texas.gov
CHRISTOPHERJ.CASO
City Attorney
MITCHELL ROBBINS
Assistant City Attorney
Texas State Bar No. 24103902
mitchell.gilbert@dallascityhall.com